Argan, Inc.

Good evening, ladies and gentlemen, and welcome to the Argan, Inc. Earnings Release Conference call for the fourth quarter and fiscal year ended January 31, 2026. This call is being recorded. All participants have been placed on a listen-only mode. Following management's remarks, the call will be open for questions. There is a slide presentation that accompanies today's remarks, which can be accessed via the webcast. At this time, it's my pleasure to turn the floor over to your host for today, John Nesbitt and Jennifer Belladeau of IMS Investor Relations. Please go ahead.

Thank you. Good evening, and welcome to our conference call to discuss Argan's results for the fourth quarter and fiscal year ended January 31, 2026. On the call today, we have David Watson, Chief Executive Officer, and Josh Bakker, Chief Financial Officer. I'll take a moment to read the Safe Harbor Statements. Statements made during this conference call and presented in the presentations that are not based on historical facts or forward-looking statements. Such statements include, but are not limited to, projections or statements of future goals and targets regarding the company's revenues and profits. These statements are subject to known and unknown factors and risks. The company's actual results, performance, or achievements may differ materially from those expressed or implied by these forward-looking statements and some of the factors and risks that could cause or contribute to such material differences and have been described in this afternoon's press release and in Argan's filings with the U.S. Securities and Exchange Commission. These statements are based on information and understandings that are believed to be accurate as of today, and we do not undertake any duty to update such forward-looking statements. Earlier this afternoon, the company issued a press release announcing its fourth quarter and full year fiscal 2026 financial results and filed its corresponding Form 10-K report with the Securities and Exchange Commission. Okay, I'll now turn the call over to David Watson, CEO of Argan. Please go ahead, David.

Thanks, Jennifer, and thank you, everyone, for joining today. I'll start by revealing some highlights of our operations and activities, and Josh Bacher, our CFO, will go over our financial results, and then we'll open up the call for Q&A. Our fourth quarter continued the strong execution we achieved across the company throughout fiscal 2026, resulting in record top and bottom line performance for both the quarter and the year. Josh will provide the details of the quarter and full fiscal year in a moment, but in summary, we had record revenue of $262.1 million in the fourth quarter and record revenue of $944.6 million for fiscal 2026. Fourth quarter gross margin of 25% and full year gross margin of 20.5%. Record net income of $49.2 million or $3.47 per diluted share. in the fourth quarter and record net income of $137.8 million or $9.74 per diluted share for fiscal 2026. Record EBITDA of $56 million or an EBITDA margin of 21.4% for the fourth quarter and record EBITDA of $162.8 million or an EBITDA margin of 17.2% for fiscal 2026. During fiscal 2026, We added $2.5 billion in new contract value, increasing our consolidated project backlog to more than $2.9 billion at the close of the year. Our balance sheet remains strong, and we generated significant cash flow in the fourth quarter. We have $895 million of cash and investments, net liquidity of $421 million, and no debt at January 31, 2026. Finally, We remain committed to returning capital to shareholders, and during the third quarter of fiscal 2026, we raised our quarterly dividend to 50 cents per share, or an annual run rate of $2. This represents our third consecutive dividend increase in the past three years. This is truly an exciting time for our company, and we are energized by the strong pipeline of opportunities we're seeing. As we've noted on previous earnings calls, Our power grid is under increasing strain. Rapid growth in AI and data centers, electrification of everything, the need to replace aging power facilities, and years of underinvestment in power infrastructure are driving urgent demand for new, reliable power generation capacity. With our capabilities, longstanding customer base, proven track record of execution, and industry-leading experience building large, complex power projects, Argan is uniquely positioned to meet this demand for the construction of high-quality, 24-7 energy resources. With our strong backlog of ongoing projects and robust pipeline of opportunities to build large, complex gas-fired power facilities, we're optimistic about the continuing demand environment for our expertise and capabilities. Similar to what I mentioned on our last call, we expect to add a handful of new projects over the next 12 to 20 months. With the teams we have in place and the cadence of our projects, we remain confident in our ability to execute on 10 to 12 jobs simultaneously. Now on to the operational review. Slides four and five present our three reportable business segments. Our power segment has the capability to build all types of power facilities, including thermal and a variety of renewable, including solar, solar with battery energy storage systems, biofuel, and biomass facilities. Power segment revenues were $204 million in the fourth quarter as compared to $197 million for the fourth quarter of fiscal 2025 and represented 78% consolidated revenues. Pre-tax book income was $55 million, and the power segment closed the year with a backlog of $2.7 billion. The industrial segment provides field services supporting new plant construction, and additions for industrial facilities and fabricates metal components like piping systems and pressure vessels. Revenue in this segment increased to $53 million compared to revenue of $33 million in the fourth quarter of 2025 and contributed 20% consolidated revenues with pre-tax book income of approximately $4 million. Backlog for the industrial segment was $253 million at January 31, 2026. Finally, revenue in our Teledata segment was $5 million in the fourth quarter of fiscal 2026 compared to $3 million in the fourth quarter of fiscal 2025 and contributed 2% consolidated revenue. The segment closed fiscal 2026 with backlog of $8.4 million. Teledata provides project management, construction services across power distribution and information communications and data networks for commercial and industrial customers. The segment also works with federal government locations and military installations requiring high-level security clearance as well as data centers. The rapid electrification of everything is driving unprecedented demand for power. At the same time, decades of underinvestment in energy infrastructure has created a critical imbalance between the high demand for energy and the constrained capabilities of the power grid. Much of the nation's thermal power infrastructure is aging out, potentially constraining the supply of reliable, high-quality, 24-7 energy that's necessary to run data centers, manufacturing facilities, and EV charging infrastructure. Only a handful of companies, including Argan, are capable of building the large, complex, combined cycle facilities necessary to power the electric economy. With our specialized capabilities, long-standing customer and vendor relationships, and proven track record of success, we are seeing heightened demand for our services. We remain dedicated to employing a disciplined approach to selecting the projects we believe are best suited to our capabilities, are a good fit within our existing portfolio projects, and strengthen our ability to drive long-term growth and profitability. Our consolidated project backlog at January 31, 2026, totaled $2.9 billion, reflecting the addition of $2.5 billion in new contract value over the course of the year, including three gas-fired power plants in the United States, totaling over 3.4 gigawatts. Our current backlog includes fully committed projects across our power, industrial, and teledata segments. We are seeing strong demand for our capabilities across all three operating segments. As I mentioned a moment ago, The rapid electrification of the economy is straining our power grid and drives demand for complex combined cycle projects. We are one of a select few companies with the expertise to successfully execute these projects, and we bring a well-recognized reputation for operational excellence and a proven track record of success. This highly favorable demand environment enables us to take a disciplined approach in selecting the right projects with the right partners in the right geographies. Our backlog is currently composed of approximately 77% natural gas projects, 14% renewable, and 9% industrial. With the demand levels we are currently seeing for new gas-fired facilities, we believe natural gas projects will continue to represent a substantial portion of our backlog for the near and mid-term. That said, we remain committed to maintaining our renewable capabilities as we believe grid reliability can benefit from a combination of renewable and thermal resources. Slide 9 highlights a selection of major projects currently underway or recently awarded. We're pleased to share that during December 2025, we reached substantial completion on our 950 megawatt Trumbull Energy Center project. Delivering a project of Trumbull's size and complexity is a significant accomplishment, and I'm especially proud of our team for reaching substantial completion ahead of schedule. We continue to make progress on our 1.2 gigawatt ultra-efficient combined cycle natural gas fire plant for SLEC in Texas and began early work on our two additional gas fire projects in Texas, the 1.4 gigawatt project with CPV and our 860 megawatt project. Work on our 700 megawatt combined cycle natural gas fire power plant in the U.S. is also progressing well. In addition to our thermal projects, our renewable projects in the U.S. are moving forward as expected. Overseas, our two projects in Ireland, the Tarbert Next Generation Power Station, a 300-megawatt biofuel plant for SSE Thermal, and the 170-megawatt thermal facility continue to make solid progress. Finally, you'll see some of our highlighted projects underway in the industrial segment, including a data center project valued at $125 million, as well as work on a recycling and water treatment plant in Alabama and a water treatment plant in North Carolina. Our backlog reflects the diversity of our capabilities, and we remain intently focused on execution excellence as we move through each project's construction cycle. With that, I'll turn the call over to Josh Bacher to take us through the fourth quarter financials. Go ahead, Josh.